You are negotiating a contract with the WeScamU Company and you are concerned that they will overcharge you for their costs, so you have included a PTA (point of total Assumption) clause in the contract. From the information provided below, what is the PTA? Target cost = $494,000.00 Target Price = $535,000.00 Ceiling prices = $629,000.00 Buyer/Seller ratio is 80/20 for overruns. Note: enter dollar amount only and two decimal places. For example, 450000.50

You are negotiating a contract with the WeScamU Company and you are concerned that they will overcharge you for their costs, so you have included a PTA (point of total Assumption) clause in the contract. From the information provided below, what is the PTA? Target cost = $494,000.00 Target Price = $535,000.00 Ceiling prices = $629,000.00 Buyer/Seller ratio is 80/20 for overruns. Note: enter dollar amount only and two decimal places. For example, 450000.50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

You are negotiating a contract with the WeScamU Company and you are concerned that
they will overcharge you for their costs, so you have included a PTA (point of total
Assumption) clause in the contract. From the information provided below, what is the PTA?
Target cost = $494,000.00
Target Price = $535,000.00
Ceiling prices = $629,000.00
Buyer/Seller ratio is 80/20 for overruns.
Note: enter dollar amount only and two decimal places. For example, 450000.50
Your Answer:
6:00 p.m. ✓

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